3. Towns and Regions
Compared

By pouring over the
ABS
figures it is possible to see how the accommodation statistics of
various NSW towns compare.The interested party has merely to download the figures, add
all the monthly rooms available, monthly rooms occupied and monthly
accommodation revenue for various NSW towns, then calculate the
average occupancy rates, tariffs and revenue per room per year.This is a very tedious task.Fortunately, I have done it for you.

The table below records the
number if motels with 15 or more rooms in each major country town,
their occupancy rate, average tariff and accommodation revenue per
room available for the 2012/13 financial year.

New South Wales Motel Statistics

Financial Year 2012/13

Annual

Accomm

Motels

Occupancy

Average

Rev

Town

15 rms +

Rate

Tariff

Per Room

Sydney

283

79.4

$195.50

$56,684

South Coast

Batemans Bay

18

43.9

$130.74

$20,942

Bega - Tathra

4

55.3

$139.33

$28,137

Eden

7

35.5

$109.60

$14,207

Merimbula - Tura Beach

17

44.2

$96.60

$15,570

Moruya - Tuross Head

3

27.5

$93.82

$ 9,431

Narooma -
Bermagui

6

54.5

$120.72

$23,999

Berkeley - Warrawong - Windang

3

26.0

$114.40

$10,837

Kiama

5

60.6

$162.00

$35,820

Kiama Hinterland - Gerringong

4

43.3

$140.01

$22,140

Shellharbour - Flinders

3

42.6

$124.49

$19,374

Wollongong

19

62.1

$152.47

$34,556

Berry -
Kangaroo Valley

4

35.0

$173.62

$22,163

Huskisson - Vincentia

4

51.4

$136.52

$25,601

Nowra

8

59.7

$109.20

$23,802

Ulladulla

10

51.5

$188.59

$35,450

Total South Coast

115

48.8

$136.60

$24,324

Snowy Mountains

Cooma

8

40.5

$108.08

$15,979

Jindabyne - Berridale

44

27.9

$235.17

$23,930

Tumbarumba

3

35.9

$91.00

$11,920

Total Snowy Mountains

55

30.3

$196.91

$21,784

Capital Country

Goulburn

12

67.5

$103.45

$25,503

Yass

6

63.8

$110.24

$25,668

Young

4

54.3

$101.40

$20,099

Queanbeyan

11

53.8

$120.89

$23,742

Bowral

9

50.8

$161.58

$29,974

Mittagong

5

53.9

$132.28

$26,023

Total Capital Country

47

55.6

$123.82

$25,134

The Murray

Albury - South

29

58.1

$124.35

$26,372

Albury Region

3

58.7

$87.50

$18,762

Lavington

4

55.3

$120.61

$24,328

Wentworth - Buronga

10

32.3

$76.21

$8,975

Wentworth-Balranald Region

6

39.9

$105.57

$15,389

Corowa

6

26.7

$106.84

$10,428

Corowa Region

5

61.7

$115.00

$25,916

Deniliquin

8

40.6

$79.61

$11,807

Deniliquin Region

8

47.7

$87.99

$15,310

Moama

11

57.2

$114.59

$23,935

Tocumwal - Finley - Jerilderie

17

32.5

$94.46

$11,197

Total The Murray

107

48.4

$110.28

$19,481

Riverina

Hay

6

50.5

$106.33

$19,586

Griffith

11

50.8

$108.36

$20,102

Leeton

3

47.6

$95.99

$16,668

Narrandera

6

42.2

$95.70

$14,754

Cootamundra

5

54.0

$100.28

$19,770

Gundagai

7

52.5

$93.62

$17,933

Wagga Wagga

26

67.6

$136.55

$33,679

Total Riverina

64

56.4

$116.25

$23,934

Central NSW

Bathurst

14

52.2

$139.65

$26,592

Cowra

7

41.7

$107.66

$16,370

Forbes

6

48.8

$106.79

$19,007

Parkes

9

59.2

$106.74

$23,067

West Wyalong

8

45.5

$85.00

$14,129

Mudgee

8

70.6

$128.06

$33,015

Orange

11

66.2

$125.45

$30,316

Coonabarabran

11

43.4

$102.93

$16,314

Dubbo - East

3

69.2

$116.29

$29,372

Dubbo - South

21

56.3

$117.78

$24,189

Dubbo - West

10

57.3

$110.21

$23,047

Gilgandra

5

36.9

$92.20

$12,432

Narromine

3

47.6

$74.02

$12,874

Total Central NSW

116

54.6

$115.26

$22,951

Hunter

Branxton - Greta - Pokolbin

13

58.2

$191.91

$40,776

Cessnock

7

47.4

$110.42

$19,091

Singleton

8

57.5

$149.64

$31,431

Maitland

3

58.9

$151.12

$32,485

Maitland - West

3

68.3

$126.54

$31,547

Muswellbrook

8

56.4

$134.53

$27,694

Scone

5

61.2

$106.76

$23,830

Scone Region

4

47.6

$93.77

$16,294

Charlestown - Dudley

4

57.9

$137.96

$29,153

Mayfield - Warabrook

5

57.2

$112.90

$23,580

Newcastle - Cooks Hill

9

73.8

$168.27

$45,328

Total Hunter

69

59.2

$151.47

$32,737

North Coast

Coffs Harbour - North

15

57.2

$121.74

$25,399

Coffs Harbour - South

16

55.9

$119.96

$24,468

Woolgoolga - Arrawarra

4

61.7

$96.42

$21,726

Nelson Bay Peninsula

14

53.5

$163.19

$31,862

Raymond Terrace

3

46.4

$126.50

$21,428

Tea Gardens - Hawks Nest

5

59.3

$106.28

$23,020

Bulahdelah - Stroud

3

50.5

$100.90

$18,593

Forster

10

44

$142.20

$22,857

Macksville - Scotts Head

3

43.3

$109.25

$17,286

Nambucca Heads

3

53.6

$99.44

$19,453

South West Rocks

3

43.9

$107.57

$17,247

Port Macquarie - East

22

61.8

$145.16

$32,720

Port Macquarie - West

8

63.6

$124.69

$28,931

Old Bar - Manning Point - Red Head

4

51.1

$162.49

$30,322

Taree

15

50.6

$97.93

$18,105

Total North Coast

128

54.7

$133.43

$26,618

New England North West

Armidale

16

60.0

$117.65

$25,781

Glen Innes

6

47.4

$89.23

$15,441

Inverell

5

47.5

$108.13

$18,746

Tenterfield

10

37.4

$97.14

$13,264

Moree

12

57.6

$93.03

$19,561

Narrabri

7

67.2

$112.44

$27,559

Gunnedah

6

60.1

$100.92

$22,121

Tamworth - East

6

42.8

$105.38

$16,461

Tamworth - North

20

55.5

$139.77

$28,325

Total New England North West

88

54.2

$113.14

$22,380

Outback

Bourke - Brewarrina

3

62.1

$152.98

$34,690

Nyngan - Warren

6

66.3

$81.74

$19,789

Walgett - Lightning Ridge

5

48.5

$88.29

$15,630

Broken Hill

13

59.0

$118.25

$25,484

Total Outback

27

61.6

$107.73

$24,226

Northern Rivers Tropical NSW

Grafton

10

49.2

$110.86

$19,913

Maclean - Yamba - Iluka

8

58.4

$161.29

$34,361

Ballina

12

56.1

$121.05

$24,774

Byron Bay

14

66.0

$213.84

$51,518

Casino

4

44.4

$98.34

$15,952

Lismore

8

43.8

$107.30

$17,173

Kingscliff - Fingal Head

6

58.5

$132.92

$28,364

Pottsville

4

42.7

$110.71

$17,244

Tweed Heads

8

59.4

$124.97

$27,074

Tweed Heads - South

4

53.0

$87.05

$16,826

Total Northern Rivers Tropical NSW

78

54.5

$139.34

$27,742

Central Coast

Gosford - Springfield

7

53.9

$111.68

$21,982

Terrigal - North Avoca

5

66.7

$212.12

$51,615

Wamberal - Forresters Beach

3

36.8

$124.17

$16,684

The Entrance

11

50.8

$198.54

$36,834

Total Central Coast

26

51.4

$167.87

$31,493

Blue Mountains

Lithgow

6

62.8

$123.15

$28,224

Blackheath - Megalong Valley

3

34.8

$133.27

$16,904

Katoomba - Leura

17

53.0

$168.30

$32,574

Total Blue Mountains

26

50.7

$185.05

$34,253

New South Wales

1,388

65.2

$169.83

$40,410

Country NSW (NSW less Sydney)

1,105

52.4

$134.95

$25,818

It is important to remember
that these statistics are averages only.In a city like Grafton, for example, the average occupancy
rate in 2012/13 was 49.2%, the average tariff was $110.86 and
average accommodation revenue generated by each room was $19,913.At the times of writing (May 2014) the NRMA records 2 x 4
star motels, 4 x 3½ star motels and 4 x 3 star motels.If Grafton follows the pattern discussed in Section 2, then
it is likely that the 4 star properties are enjoying occupancy rates
closer to 60% than 49.2%, the 3½ star properties are around the
average, and the 3 star properties have occupancy rates below 49.2%.

The NRMA website records
tariffs for the 4 star properties as $125 plus.The 3½ star motels have tariffs starting at $70, $78, $91 and
$106, and the 3 star properties have tariffs of $69, $69, $77 and
$95.

The table above
also highlights the absurdity of valuing motels on a price per room
basis, although this is one of the standard methods of professional
motel valuers.An
average motel room in Wagga Wagga generates $38,480 in accommodation
revenue annually.The
average motel room in Lismore generates less than half that amount -
$15,451.

I have just read a valuation
report that suggests a Wagga Wagga motel is overpriced, because its
price per room is higher than the price per room achieved in a
recent Lismore sale.On
the figures above, this conclusion is clearly absurd.

There is no such thing as a
good motel town or a bad motel town.Motels generate revenue in accordance with the supply and
demand for accommodation.The important things to note when considering a motel
purchase are the current return on investment and the expected
future return on investment.